Land & Buildings Warns National Healthcare Corp. (NHC) Faces Up to 38% EBITDA Hit in Lease Standoff with National Health Investors (NHI)

Land & Buildings warned that National Healthcare Corp. (NHC) faces major downside risk as its long-standing, below-market lease with National Health Investors (NHI) nears expiration in December 2026. The firm outlined three possible outcomes for NHC—each with earnings declines ranging from 19% to 38%—and argued that NHI is now in a stronger negotiating position due to recent shareholder pressure and leadership changes. If rents are marked to market, NHI could see a 12% boost in FFO/share. Land & Buildings criticized the historical relationship between NHC and NHI, highlighting governance concerns and a legacy of misaligned incentives. It warned that aggressive negotiation tactics by NHC could trigger regulatory scrutiny and broader reputational risk. Citing lack of analyst coverage and transparency at NHC, the firm disclosed a short position in NHC shares.